Investing - Page 114

Investing refers to the act of allocating resources, typically money, into various assets or ventures with the expectation of generating a profitable return or income over time. This can include purchasing stocks, bonds, real estate, or other financial instruments. The primary goal of investing is to grow wealth, and it often entails a degree of risk, as there is no guaranteed return. Investors must assess potential risks and rewards when making decisions, and strategies can vary widely depending on an investor's goals, timeline, and risk tolerance. There are generally two primary types of investing: active investing, where individuals or managers make regular decisions to buy and sell assets, and passive investing, which involves a more hands-off approach, such as investing in index funds that track market indices. Overall, investing is a fundamental financial practice that aims to build financial security and generate wealth over time.